Worcester, Charter reach 10-year cable TV contract

WORCESTER —The city has agreed to a new 10-year cable television contract with Charter Communications.

Under the terms of the deal, Charter will pay a franchise fee equal to 5 percent of gross annual revenues — the maximum allowed under federal law, according to City Manager Michael V. O'Brien.

Charter will also provide $1.5 million in capital funding for the cable system's "PEG" channels: public access (WCCA-TV, channel 13), the education channel (11) operated by the Worcester Public Schools, and city government's channel 12.

The $1.5 million will be paid in two installments, with $900,000 paid no sooner than Jan. 2 nor later than Jan. 10, and $600,000 on the fifth anniversary of the contract's effective date.

In addition, Mr. O'Brien said the three PEG channels will remain on Charter's basic service tier, ensuring their availability to all subscribers.

He said the new contract requires that the PEG channels remain "bundled" with the over-the-air local broadcast signals. When those channels are relocated to the digital tier, the PEG channels will be relocated at the same time, but not sooner, the manager added.

The license also contains a first-time provision that allows for the possibility of interconnecting Worcester's three PEG channels with PEG channels in other Charter systems in Central Massachusetts.

Currently, each community served by Charter has its own public access channel that is responsible for generating local programming. But representatives of WCCA have long been pushing for the channel's programming to be shown in other Central Massachusetts communities served by Charter.

Another key provision of the new license will result in increased picture quality of the three PEG channels. Because of its age and obsolescence, Mr. O'Brien said Charter will no longer be required to provide for and maintain an "institutional network." Instead, the PEG access studios will transmit signals by a direct fiber link or by equivalent technology, which will result in better picture quality for those channels.

Mr. O'Brien said Charter has agreed to continue local origination new programming (Channel 3) and retain a senior discount program, though it will be at a reduced rate.

"We are pleased with the outcome of this negotiation," Mr. O'Brien said. "Charter has worked with the city to establish a financially feasible system that protects the interests of Worcester residents.

"The license meets or exceeds the standards of other communities with similar subscribership," he added. "We look forward to a long partnership with Charter and quality service and programming in the years to come."

The city has traditionally negotiated 10-year contracts with Charter, though in 2008 it broke from that practice and negotiated a five-year deal, which expired this year.

It was the city's contention at that time that a shorter-term deal was in its best interest because technology, competition and regulations for the cable industry evolve so rapidly.

As part of its preparations for negotiations, the Cable Advisory Committee recommended that the city go back to a having a 10-year contract with Charter.

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